More than 98% of employees have fewer than how many employees?

• A. 50
• B. 100
• C. 500
• D. 1000

Answer: (B)

Firms are heavily skewed toward small sizes, so the vast majority of employers have only a modest number of employees. In fact, more than ninety-eight percent of firms hire fewer than one hundred people. That makes one hundred the best benchmark because it includes nearly all small businesses while excluding the much smaller share of larger firms. If we used fifty, we’d miss many firms with 51–99 employees; if we used five hundred or a thousand, we’d include far fewer firms than the statistic describes. So the right threshold is one hundred.